RH (NYSE:RH) Trading Down 6.7% – Here’s Why

RH (NYSE:RH) traded down 6.7% during mid-day trading on Monday . The company traded as low as $389.43 and last traded at $391.04. 233,717 shares were traded during mid-day trading, a decline of 56% from the average session volume of 529,824 shares. The stock had previously closed at $419.11.

Wall Street Analyst Weigh In

RH has been the subject of several research analyst reports. BNP Paribas restated an “underperform” rating and set a $253.00 price target on shares of RH in a research report on Wednesday, November 13th. Wells Fargo & Company lifted their target price on RH from $425.00 to $500.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Telsey Advisory Group raised shares of RH from a “market perform” rating to an “outperform” rating and lifted their target price for the company from $485.00 to $500.00 in a report on Thursday, December 19th. Stifel Nicolaus lifted their price objective on RH from $420.00 to $500.00 and gave the stock a “buy” rating in a research report on Monday, December 16th. Finally, Loop Capital increased their target price on RH from $320.00 to $450.00 and gave the company a “hold” rating in a report on Monday, December 16th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and eleven have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $431.60.

RH Stock Down 4.1 %

The company has a market cap of $7.47 billion, a P/E ratio of 115.60, a PEG ratio of 9.60 and a beta of 2.43. The company has a 50 day moving average price of $407.01 and a 200-day moving average price of $338.29.

RH (NYSE:RH) last released its quarterly earnings results on Thursday, December 12th. The company reported $2.48 EPS for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.19). RH had a negative return on equity of 35.72% and a net margin of 2.25%. The company had revenue of $811.73 million for the quarter, compared to the consensus estimate of $812.19 million. During the same quarter last year, the firm posted ($0.42) earnings per share. The firm’s quarterly revenue was up 8.1% compared to the same quarter last year. On average, research analysts expect that RH will post 4.37 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Keith Belling sold 500 shares of the business’s stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $415.00, for a total transaction of $207,500.00. Following the sale, the director now directly owns 5,470 shares of the company’s stock, valued at $2,270,050. The trade was a 8.38 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Edward T. Lee sold 600 shares of the stock in a transaction on Friday, January 17th. The shares were sold at an average price of $446.73, for a total value of $268,038.00. The disclosure for this sale can be found here. Insiders sold a total of 66,880 shares of company stock worth $29,129,879 over the last 90 days. 28.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On RH

Hedge funds have recently made changes to their positions in the company. Creative Planning lifted its holdings in shares of RH by 4.2% in the second quarter. Creative Planning now owns 2,426 shares of the company’s stock valued at $593,000 after purchasing an additional 97 shares in the last quarter. Sanctuary Advisors LLC purchased a new stake in shares of RH in the second quarter worth approximately $601,000. Handelsbanken Fonder AB boosted its holdings in shares of RH by 130.5% during the third quarter. Handelsbanken Fonder AB now owns 7,596 shares of the company’s stock worth $2,540,000 after purchasing an additional 4,300 shares during the period. O Keefe Stevens Advisory Inc. acquired a new stake in shares of RH during the third quarter worth approximately $307,000. Finally, CWM LLC grew its position in RH by 47.2% during the third quarter. CWM LLC now owns 468 shares of the company’s stock valued at $157,000 after purchasing an additional 150 shares in the last quarter. Hedge funds and other institutional investors own 90.17% of the company’s stock.

RH Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.